Dow Jones Industrial Average rallies 760 points to highs of the day

Carrie Elliott

USA markets roared back into positive territory on Friday after a steep drop a day earlier, thanks to an upbeat jobs report and a signal from the head of the Federal Reserve that interest rates will not be rising as quickly as some had forecast. Facebook, Amazon, Apple and Google-parent Alphabet all rose more than 3.5 percent.

Traders were encouraged by news that employers ramped up hiring in December, which could allay fears about an economic slowdown. Apple originally forecast revenue of between $89 billion and $93 billion.

China said trade talks would resume next week, and Fed Chairman Jerome Powell said the central bank will be flexible with rates.

The Standard & Poor's 500 index climbed 84.05 points, or 3.4%, to 2,531.94 on Friday, more than wiping out its Thursday loss.

Stocks are rocketing higher Friday and wiping out much of the previous day's losses after a string of developments eased investors' concerns about the global economy and interest rates.

Meanwhile the Labor Department said US employers added 312,000 jobs last month, a far stronger result than experts had anticipated.

Powell also said the central bank would not "hesitate" to change its balance-sheet reduction plan if it was causing problems.

The S&P 500 index rose 67 points, or 2.8 percent, to 2,515. The Dow Jones Industrial Average soared nearly 600 points in the latest twist in a wild three months for markets. Netflix and Intel rose 9.1 percent and 5 pecent, respectively.

A day after plummeting on concerns about Chinese growth, markets recovered on improved sentiment as the US and China are set to resume trade talks, U.S.jobs numbers soared in December and the Federal Reserve chairman suggested it may slow rate hikes. Copper rose 3.1 percent to $2.65 a pound.

European shares also overcome losses from a day earlier, with Germany's DAX gaining 3.4 per cent and France's CAC 40 rising 2.7 per cent. Britain's FTSE 100 advanced 2.2 per cent.

The data propelled Treasury yields to their session highs, with the 10-year yield trading around 2.62 percent.

Technology and energy stocks are leading the broad gains.

Analysts at Macquarie Capital said that the rate cut shows government efforts to support the economy have now moved to the "second level" and should signal to investors that more stimulus is in the pipeline.

China's Commerce Ministry said the talks will be held Monday and Tuesday in Beijing and market watchers are once again hoping for signs the world's largest economic powers will make progress toward resolving their dispute.

Factory activity weakened across much of Europe and Asia in December as the US-China trade war and a slowdown in demand hit production in many economies, offering little reason for optimism as the new year begins.

The Dow Jones Industrial Average rose 308 points, or 1.4 percent, to 22,994.

The Nasdaq rose 96 points, or 1.5 percent, to 6,559. The stock has dropped from its all-time high of $232.07 per share back in October, to its current trading price of just ~$143.84 per share. In the USA government bond market, a typical safe-haven, the yield on the benchmark 10-year, which moves inversely to the bond's price, sank to an 11-month low.

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